Here's how you can save thousands on your next mortgage renewal
Just don't sign the mortgage renewal form the bank sends you! Most banks make it super easy for you to renew your mortgage. They offer a bunch of choices at many different rates. Just 'initial here' and it's done. But did you know that the renewal form usually contains only the highest 'posted rates'.
When you want a mortgage renewal the Bank is not your friend
Remember when you bought your home? You had a mobile mortgage specialist or mortgage broker helping you get the best rate. They call it the 'discounted rate' and it's often 1% or more below the 'posted rates'. You can still get the discounted rates - but you will have to negotiate for it.
Do you need to change lenders to get the best rates on your mortgage renewal?
Sometimes. But depending on your relationship with your bank, they may offer you their 'preferred rate' right away. Usually, they'll try to charge a bit more. After all, it's the branch managers job to increase profit margins. The only sure way to get the best rate from your current lender is to a) know what the best rates are and b) have an offer from another lender at that rate. In almost every case your current lender will match that rate. If they don't - go elsewhere!
Fastest way to compare mortgage renewal rates. RateHub.ca
I like RateHub.ca because they shop the market for you. You can still call your mortgage broker or mortgage specialist to service your mortgage renewal, but you'll be armed with the knowledge you need to negotiate the best deal.
Is it worth negotiating to get the discounted mortgage rate vs the posted rate?
On a 200,000 mortgage, a 1% difference in the interest rate means $2000 per year or$10,000 over 5 years!
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